CASH CREDIT (CC)
Revolving Working Capital for Eligible Operating Businesses
Explore Cash Credit facilities for eligible businesses managing inventory, receivables, operating expenses and recurring working capital requirements.
- Facility: Revolving Cash Credit
- Purpose: Operating Working Capital
- Funding Route: Banks / Eligible Institutions
- Assessment: Business & Cash-Flow Based
Overview
Working Capital Aligned With Business Operations
Capital Yono assists eligible operating businesses in exploring Cash Credit facilities through suitable banks and financing institutions. The proposal may be assessed using the operating cycle, historical and projected sales, stock and receivables, banking conduct, existing facilities and available security or guarantee arrangements.
Facility structure, drawing power, renewal and security are determined by the lender. A Cash Credit limit is not the same as a fixed-disbursement term loan.
Suitable Uses
- Inventory and raw-material procurement.
- Day-to-day business working capital.
- Receivables and operating-cycle requirements.
- Eligible seasonal or order-related business needs.
Preliminary Screening
Limits, margin, renewal conditions and drawing power are facility-specific and will be assessed by the lender.
The financing institution may review business vintage, sales and GST records, current account turnover, financial statements, existing bank limits, stock and debtor position, repayment history, promoter profile and available security or eligible guarantee options.
Documents to Keep Ready
- Entity/promoter KYC and constitution; recent GST returns and ITR as applicable; financial statements and available provisional accounts; recent primary bank statements; details of existing CC/OD and other borrowings; stock/debtors information where relevant; business profile, orders and security information as applicable.
FAQs
What is the difference between Cash Credit and a Term Loan?
Cash Credit supports approved recurring working capital utilisation within a sanctioned limit. A Term Loan normally finances an identified expenditure through an agreed disbursement and repayment structure.
Can an existing CC limit be taken over or enhanced?
An eligible takeover or enhancement may be evaluated using the outstanding facility, banking conduct, financials, working capital assessment and the proposed institution’s criteria.
Is collateral mandatory for every CC facility?
Security depends on the chosen facility and lender. Applicable collateral-free guarantee-backed or hybrid arrangements may be explored for eligible proposals.
Do proprietorship applicants have a specific funding route?
Yes. Explore the separate Proprietorship Business Cash Credit product for its specific published range and preliminary lender-route conditions; those are not universal CC criteria.
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Discuss Your Cash Credit Requirement
Share your working capital requirement and business details for a preliminary facility assessment.
Funding is subject to eligibility, appraisal, due diligence, approval and final terms from the relevant funding provider.